Council renews PILOT discussion

January 28, 2002

HDC Construction of Novi has proposed to initially pay $15,000 annually in lieu of taxes on a 48-unit, $4-million development it wants to build on West Street.

Payments would increase with the possible addition of another 48 units and with the increased passage of time over the 35-year life of a loan from the Michigan State Housing Development Authority (MSHDA).

HDC President Mike Jacobson estimated the project would cost $8.1 million when built out to a full 96 units.

HDC will access a $4.6-million loan through MSHDA to fund construction with $1.5 million from Rural Development in a 1-percent federal loan and $2 million in equity from business partners.